Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.

Wednesday, November 2, 2011

WHAT’S THE BUZZ? TELL ME WHAT’S A HAPPENIN’ – WEDNESDAY EDITION

+ The Taxpayer Advocacy Panel has released
its 2010 Annual Report, describing its activities and recommendations to
improve IRS service and customer satisfaction. The report summarizes the Panel’s
accomplishments in 2010, including 101 new recommendations the panel provided
to the IRS.

While I do support the concept of
Perry’s flat tax plan, except, of course, for the option to continue to be
taxed under the current system, I certainly do not support his candidacy for President.The last Texas Governor we elected to the
White House turned out to be the worst President in my lifetime!

Although providing the option to
choose either the flat tax or the old system is totally ridiculous, Perry still
supports it -

“As
for criticisms of the complexity of the plan — taxpayers can choose either the
old system or the new flat tax — Perry was dismissive. ‘I think most Americans
know right off the top of their heads they’re going to take the 20 percent flat
tax,’ he said. ‘If some Americans want to contact an accountant, that’s their
business.’”

He did get one thing right -

“’Historically
those who have money put more into their businesses, they hire more people,’ he
said. ‘That’s what we need to focus on.’ He repeatedly responded to questions
about growing income inequality by saying he was ‘not interested in class
warfare’.”

My first thought was that tons more
lower income taxpayers will be taken advantage of and overpay for having their
returns prepared – but the item pointed out that Jackson Hewitt, which sought
Chapter 11 bankruptcy protection in May, had previously offered tax preparation
services at Wal-Mart.

“.
. . picking between the two tax laws will a huge pain in the butt. The only way
to get the right answer will be to do your taxes twice. And if you happen to be
among the millions at risk for paying the dreaded Alternative Minimum Tax,
you’ll have the pleasure of doing your returns three times each year.”

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